MGM Springfield 1414 Main Street - Suite 910

Springfield, MA 01144 413-273-5000

September 22, 2015 By mail and email The Honorable Domenic J. Sarno Office of the Mayor 36 Court Street Springfield, MA 01103 Re: Final Project Design Dear Mayor Sarno: I wanted to follow up on a meeting I participated in last Thursday with Bill Hornbuckle, Kevin Kennedy, and Ed Pikula. As we discussed during that meeting, one of the benefits of having to extend our opening date due to circumstances beyond our control was our ability to spend additional time reviewing our plans and validating pricing. As we explained, that pricing exercise confirmed that the frenzied construction activity in this region has shown no signs of subsiding, and ironically all of the economic activity that our teams have collectively worked so hard to create in Western Massachusetts, has exacerbated labor and commodity prices. Accordingly, we initiated a design review to see if we could better align the plans and budget, as is customary for this type of project. We also took this opportunity to review the project design. Our review caused us to rethink our hotel and residential program. As contemplated by our host community agreement, we have revised our design, and in so doing, have developed a concept that we believe will permit more cost effective construction, address the interests raised by the state and local historic commissions, and serve as a catalyst for increased economic activity in Springfield. Specifically, we plan to relocate our residential program to a nearby location that is outside of the current footprint. This permits us to advance a Main Street hotel program by eliminating the hotel tower and relocating the 250 hotel guest rooms to the front of the project along Main Street between State and Howard Streets. This is reflected in the new proposed site plan and renderings we previewed with your team, which are attached to this letter. These renderings show a new front-facing hotel that would allow tourists and visitors to engage Main Street and its businesses more easily. We believe that this revised design is more consistent with the historic Main Street imagery upon which we gained such tremendous local support. Nevertheless, the State Street location and prior design of that component is still extremely viable and would be reserved for a second-phase expansion if and when market conditions mandate.

Mayor Sarno September 22, 2015 Page 2 of 2

Our new residential concept directly extends our development beyond the four corners of our property, and we believe will make for a market changing residential experience. We have identified a few locations that we would like to discuss with you. Further, we believe that a benefit of bringing that program offsite is that we would be able to develop it and bring it to market in advance of our opening, and start bringing young professionals and all of the economic activity that comes with them, back downtown that much sooner. These proposed changes otherwise leave our original design largely untouched, with the exception of the historic-related modifications we have previously discussed with your staff. Rest assured that the proposed changes will not jeopardize our planned completion date of September 2018 and will result in no reduction, but instead likely an increase, to the $800 million investment in the Project committed to in our RFA-2 application. We anticipate that you will share our excitement over this new design, and we look forward to continuing to refine it as we proceed with Site Plan Review by the Office of Planning and Economic Development, its consultants and the City Council. We hope that you will join us with your support as we present this design development to the Massachusetts Gaming Commission this Thursday at our project update. Sincerely,

Michael C. Mathis, President & COO Cc: Kevin Kennedy Edward J. Pikula Chairman Stephen Crosby Bill Hornbuckle